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FCC Approves T-Mobile and Sprint Merger

By | November 7, 2019
United States Federal Communications Commission US FCC

Federal Communications Commission. Photo: FCC

The Federal Communications Commission (FCC) finally approved the T-Mobile and Sprint merger. According to the filing which was released on Nov. 5, the FCC believes that the merger will “yield significant network deployment benefits, increasing the quality and availability of advanced wireless services,” including public interest benefits from the deployment of a nationwide 5G network.

The statement further detailed the benefits of the merger. “Benefits will occur nationwide, but will be particularly significant for rural areas, where the conditions require robust broadband services deployment well beyond what the Applicants would otherwise deliver in the absence of the transaction,” the statement read. “Increasing the quality of the Applicants’ network will deliver benefits directly to their customers, while also yielding dynamic competitive benefits as they create a strong alternative to the two leading national networks. Moreover, the Applicants’ improved network will allow them to deliver an in-home broadband service bringing consumers benefits beyond those in the mobile wireless market. Additionally, the combination will enhance competition in the enterprise market and likely facilitate the development of innovative service offerings in 4K video and Internet of Things (IoT).”

There were several stipulations attached to this agreement, including Sprint’s divestiture of Boost Mobile. “The Department of Justice (DOJ) will not object to the merger of T-Mobile and Sprint subject to, among other conditions, the Applicants’ divestiture to Dish of Sprint’s prepaid assets (Boost Mobile, Sprint-branded prepaid, and Virgin Mobile), and the Applicants’ entering into an Mobile Virtual Network Operator (MVNO) agreement with Dish for at least seven years,” the statement read.

In July, Dish entered the U.S. market as a fourth wireless carrier, and Dish bought $5 billion worth of assets from T-Mobile and Sprint.